This week, one of “The Big Four” were favoured by our Super Stock Selectors.
Which bank?
“CBA is at the bottom of the recent trading range, the chart showing clear signs of support, estimates of dividend yields above 6% plus franking,” CMC Markets’ Michael McCarthy says.
“What’s not to like?”
CBA closed at $72.24 on Friday and is trading much lower than its 52-week high of $85.85.
CBA
Source: Yahoo!7 Finance, 19 September
In McCarthy’s dislikes list is JB Hi-Fi. The company recently confirmed its takeover of whitegoods retailer, The Good Guys, for $870m, extending its network of 101 stores across Australia and New Zealand to 295 stores.
But McCarthy remains neutral on the deal.
“The share price is too hot for me. Happy to sell above $29 with a view to buying back later, after the placement stock is digested,” he says.
Indeed, JB Hi-Fi roared back into trade on Friday, with the shares reaching an intra-day high of $31.14 before closing at $30.00.
JB Hi-Fi
Source: Yahoo!7 Finance, 19 September
Raymond Chan of Morgans remains upbeat on Ardent Leisure Group (AAD) this week, in anticipation of news on its marina assets sale.
In March, Ardent Leisure announced plans to sell down marinas in Australia and the US as part of the company’s strategic process to maximise the Group’s potential for its leisure and entertainment businesses.
At its full-year presentation, Ardent Leisure noted that the marinas sale process “remains on track, with significant interest from a number of credible buyers.”
Chan also kept Regis Healthcare (REG) in his dislikes list on the back of ongoing regulatory uncertainty.
Regis
Source: Yahoo!7 Finance, 19 September
Gary Stone of Share Wealth Systems likes Virtus Health (VRT).
“Virtus Health’s share price rose above a key resistance zone of $7.10 to $7.45 at the end of July, rising to a peak of $8.25 a month later. VRT’s share price then retraced to $7.65 last week, a typical retracement – of just over a third of the prior run-up – for a stock that is in an uptrend.”
Virtus
Source: Yahoo!7 Finance, 19 September
In Stone’s dislikes list is Programmed Maintenance Services (PRG), after its share price rose 112% from February to the start of September this year and reached a strong resistance zone between $2.05 and $2.15.
“PRG’s share price, in the first instance, should fall to around $1.70. But given the strong rise over seven months, could retrace a bit more to around $1.57 before reversing to attempt another break through the aforementioned resistance zone of $2.05 to $2.15,” he says.
Programmed Maintenance Services
Source: Yahoo!7 Finance, 19 September
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
